A look at Customer Acquisition Cost and Customer Lifetime Value, the two metrics that determine if your ad spend actually works. One client spent $1.5 million monthly on ads and got a 3-to-5x return in 90 days by tracking these numbers obsessively.
They understood how much they were paying to acquire a customer through advertising and how much a customer will be worth to them over the next 30, 60, 90 days, right? They were making, at some point, we were spending around $1.5 million a month on advertising for this customer, and they were making 3 to 5x that money over the next 90 days because of this process that they had. So if you pay attention to those 2 metrics, you can have a really successful, really, really successful business, and most of the guys that I work with that are spending a lot of money, like Grant Cardone, I was marketing director for Grant Cardone, you know, I advise Tony Robbins' team and whatnot, they always have these 2 metrics in mind. It's how much are we paying to acquire a customer through advertising, and how much that customer is worth to us over the long run.
